Key Moments
- EUR/GBP has registered a lower peak near 0.8690 beneath its 200-day moving average.
- Societe Generale analysts highlight a Head and Shoulders formation signaling potential downside for the cross.
- Key resistance is seen at 0.8690/0.8700, with downside objectives at 0.8565 and 0.8535/0.8520 if the rebound fades.
Head and Shoulders Pattern Signals Bearish Bias
Societe Generale’s technical analysis team reports that EUR/GBP has carved out a lower high around 0.8690, trading below its 200-day moving average and retreating toward the neckline of a Head and Shoulders configuration.
According to the analysts:
“EUR/GBP formed a lower peak around 0.8690 (below its 200-DMA) and has pulled back towards the neckline of the Head and Shoulders pattern.”
“The formation points towards potential downside.”
Key Resistance Levels and Downside Targets
The bank’s strategists flag the recent pivot area as a critical resistance zone should the cross attempt a short-lived bounce.
“If a brief rebound develops, recent pivot high of 0.8690/0.8700 may serve as an important hurdle.”
“An inability to overcome this resistance may lead to persistence in down move.”
They identify the following price projections as the next potential downside levels:
| Level Type | EUR/GBP Level |
|---|---|
| Resistance zone | 0.8690/0.8700 |
| Downside objective | 0.8565 |
| Downside objective zone | 0.8535/0.8520 |
As summarized by Societe Generale, “The next objectives could be located at projections of 0.8565 and 0.8535/0.8520.”
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